Are we heading for a bubble?

System

Why save money when they can just print money?

Linton

mrlegend123 wrote: »

Why save money when they can just print money?

Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.

bowlhead99

mrlegend123 wrote: »

Why save money when they can just print money?

That is the point. They don't want you to save money, they want you to spend or invest it.

Saving money for a rainy day takes it out of circulation and slows down the economy. When the economy is having a rainy day, they want you to spend and/or invest, to stop it raining.

Due to economic uncertainty for Brexit and the consequent weakness in business confidence and slowdown of investment activity, they have declared a rainy day.

Glen_Clark

bowlhead99 wrote: »

That is the point. They don't want you to save money, they want you to spend or invest it.

Saving money for a rainy day takes it out of circulation and slows down the economy. When the economy is having a rainy day, they want you to spend and/or invest, to stop it raining.

Due to economic uncertainty for Brexit and the consequent weakness in business confidence and slowdown of investment activity, they have declared a rainy day.

Then they should lead from the front and set an example by cashing in their gold plated pensions and spending them

AnotherJoe

Linton wrote: »

Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.

Most of its probably locked up in houses at a guess?

DiggerUK

Bubbles rely on cheap money, easily available, and plenty of it.
Everything is being attempted to make the economy bubble, but it's not succeeding.

I suspect that an extended liquidity squeeze, or a simple reluctance to leverage up, may just take us straight into a dive down.

Don't ignore the dangers implicit in a flatlining/declining GDP; with those figures, who wants to invest, who wants to lend..._

JohnRo

Linton wrote: »

Inflation has been practically zero for some years. Any printed money at the moment hasnt entered the real economy. It's bouncing around the BoE and bank reserves held by the BoE. That's the problem.

It's bouncing around the globe's stock and property markets, that's where all the inflation is.

fewgroats

Are some products like 3D printers or drones doomed for a fall?

Jonbvn

DiggerUK wrote: »

Bubbles rely on cheap money, easily available, and plenty of it.
Everything is being attempted to make the economy bubble, but it's not succeeding.

I suspect that an extended liquidity squeeze, or a simple reluctance to leverage up, may just take us straight into a dive down.

Don't ignore the dangers implicit in a flatlining/declining GDP; with those figures, who wants to invest, who wants to lend..._

Lots of words to say "Buy gold" :rotfl:

mapk

fewgroats wrote: »

Are some products like 3D printers or drones doomed for a fall?

A falling drone is inevitable